Supplemental insurance is a policy that you purchase in addition to normal health insurance. The purpose is to help you afford out-of-pocket expenses and services that your regular health insurance might not cover. This type of policy is an additional type of protection, and is not a substitute for your traditional health insurance policy.
People who have children or run their own business usually purchase supplemental insurance. People who cannot afford to miss time from work or have little money for medical bills use supplemental insurance too. People on Medicare can benefit from supplemental insurance as well. A person who becomes disabled because of illness or injury might benefit financially from this type of insurance.
There are several types of add-on policies available. An accidental death and dismemberment policy pays a lump sum to your beneficiary should you die due to an accident. It also provides smaller compensation for eyesight loss or limb loss from an accident. It can also pay for medical costs associated with an accident that normal insurance will not cover.
Critical illness insurance is disease-specific supplemental coverage. You can choose supplemental coverage for cancer, heart, and other types of disease. These policies pay cash benefits if you become ill or die.
Dental supplemental insurance covers dental expenses that regular dental insurance does not. There is also disability insurance, which provides a monthly payment in addition to your regular disability policy.
Hospital indemnity insurance helps pay for illnesses that confine you to a hospital bed. Long-term healthcare is supplemental insurance that pays for care over a length of time. In-home medical care, assisted living and other types of long-term care can be paid with long-term health supplemental insurance.
You should learn if supplemental insurance is good for you. Check with your local health insurance company.